China's PDD suffers $40 billion market cap wipeout after flagging an uncertain market

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China's PDD suffers $40 billion market cap wipeout after flagging an uncertain market

-China's PDD Holdings missed market estimates for quarterly revenue on Monday, and downbeat comments from executives about China's domestic e-commerce competition and the firm's global outlook sent its shares down more than 28%.

"We will enter a new phase of high-quality development that calls for increased investments and our profitability will be affected as a result," he added. UBS analyst Kenneth Fong said that while Pinduoduo was performing well, with good growth and profitability in spite of the highly competitive domestic e-commerce environment, management's tone was confusing for investors.

Chinese e-commerce giant Alibaba missed market estimates for revenue earlier this month, pinched by weaker domestic e-commerce sales, while JD.com's quarterly revenue grew only 1.2%.PDD reported revenue of 97.06 billion yuan in the second quarter, compared with analysts' average estimate of 100 billion yuan, according to LSEG data.

 

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